Key points
- Elon Musk attempted a $97.4 billion takeover of OpenAI in early 2025.
- Musk sought funding from Meta CEO Mark Zuckerberg. Zuckerberg and Meta declined to participate in the bid.
- OpenAI countersued Musk, alleging a “sham bid” and harassment.
- OpenAI subpoenaed Meta for communications related to the takeover attempt.
Court documents filed Thursday revealed a previously unknown attempt by Elon Musk to acquire OpenAI for a staggering $97.4 billion in early 2025. The revelation is part of an ongoing legal battle between Musk and OpenAI, stemming from Musk’s objections to OpenAI’s transition from a non-profit to a for-profit entity.
The filing details Musk’s approach to Meta CEO Mark Zuckerberg, seeking financial backing for the ambitious takeover bid. This surprising development sheds further light on the increasingly bitter feud between the tech titans.
Musk’s proposal, presented as a letter of intent, aimed to assemble a consortium of investors to finance the acquisition. However, Zuckerberg and Meta ultimately declined to participate in the deal.
The court filing notes that Meta, actively investing in its own AI capabilities and aggressively recruiting top AI talent, chose not to engage with Musk’s offer. This decision further underscores the competitive landscape within the rapidly evolving generative AI market.
The rejection of Musk’s bid adds another layer of complexity to the legal dispute. OpenAI has countersued Musk, alleging that his takeover attempt was a “sham bid” designed to harm the company’s business. Further, they accuse Musk of persistent harassment through legal actions and public attacks on social media and in the press.
As part of its counterclaim, OpenAI has issued a subpoena to Meta, demanding access to communications between Zuckerberg, Meta, and Musk concerning the proposed acquisition.
Meta, however, has pushed back against the scope of OpenAI’s request, arguing that it is overly burdensome and that OpenAI should instead focus its efforts on obtaining relevant information directly from Musk and his company, xAI.
This legal maneuvering highlights the escalating tensions between OpenAI and Musk, underscoring the high stakes involved in the battle for dominance in the rapidly developing AI sector. The outcome of this legal battle will likely have significant implications for the future of the AI industry.
